Endowus returns S$2m in trailer fee rebates to investors

ROBO platform Endowus has rebated S$2 million in trailer fees to clients, less than 2 years since it rolled out retail services in 2020.

Trailer fees are the portion of funds' annual management fees that are paid out to distributors. This portion could range between 20 and 70 per cent of the annual management fee, depending on the distributor's marketing clout.

In developed markets such as the UK, the payment of trailer fees - also called retrocessions - is banned as it is seen as a potential conflict of interest and may compromise independent advice.